Wednesday, July 3, 2024
Tuesday, July 2, 2024
Federal Government Sells 1 Million Barrels of Gasoline Ahead of Fourth of July Holiday
The federal government completed the sale of 1 million barrels of gasoline from the Northeast Gasoline Supply Reserve (NGSR), the White House said in a statement shared with The Epoch Times on Tuesday.
After receiving 19 proposals from five companies since May 21, the federal government awarded contracts to all the firms: BP (500,000 barrels), Vitol (200,000 barrels), Freepoint Commodities (100,000 barrels), George E. Warren (100,000 barrels), and Irving Oil (98,824 barrels).
Gas reserves were sold at an average $2.34 per gallon.
Senior administration officials touted the news as another victory for the federal government’s inflation-fighting efforts.
“The Biden-Harris Administration continues to take strategic action to lower prices for American consumers in every aspect of their lives—especially as summer driving season ramps up,” said Energy Secretary Jennifer Granholm. “By releasing this reserve ahead of July 4th, we are ensuring sufficient supply flows to the northeast at a time hardworking Americans need it the most.”
But while gasoline prices have not rocketed this summer, the White House is trying to build on the plethora of measures to reduce energy costs, says National Economic Advisor Lael Brainard.
“Gas prices have come down nearly 20 cents in the last two months, but we know there is more to do,” said Ms. Brainard. “This release will help lower prices at the pump, building on other actions by President Biden, including historic releases from the Strategic Petroleum Reserve, record energy production, and the largest-ever investment in clean energy.”
The cost of gas could start ticking higher because of the jump in crude oil prices.
U.S. crude topped $83 a barrel on the New York Mercantile Exchange during the July 1 trading session. Year-to-date, the West Texas Intermediate crude oil benchmark is up about 17 percent.
Oil prices have cooled since the end of April, but the revival of geopolitical tensions, investors bracing for the Federal Reserve to cut interest rates, an active hurricane season, and tight international energy markets have bolstered oil prices in recent sessions.
“Summer got off to a slow start last week with low gas demand,” said AAA spokesperson Andrew Gross. “But with a record 60 million travelers forecast to hit the road for the July 4th holiday, that number could pop over the next 10 days. But will oil stay above $80 a barrel, or will it sag again? Stay tuned.”
Tapping Into Reserves
In 2012, President Barack Obama created the Northeast Gasoline Supply Reserve following Hurricane Sandy, which destroyed refineries in the region.Recent EIA figures revealed domestic gas inventories totaled 233.886 million barrels for the week ending June 21, down more than 3 percent from the same period three years ago.
Additionally, following Russian President Vladimir Putin’s invasion of Ukraine, President Biden tapped into the nation’s emergency oil stockpiles to curb prices, drawing down 180 million barrels of oil. The White House estimates this trimmed gas prices by about 80 cents.
The SPR is approximately 40 percent lower than in January 2021. Since hitting a bottom of 346.758 million barrels in July 2023, the U.S. government has been gradually refilling reserves. As of June 21, the SPR was 372.197 million barrels, the highest since December 2022.
The White House has repeatedly shifted its position to replenish the SPR.
However, Ms. Granholm told Reuters in a June 28 interview that the administration could rush offers to replenish U.S. reserves beyond a 3-million-barrel-a-month pace.
“It could pick up more than that,” she said, adding that two SPR locations in Louisiana and Texas have been in maintenance. “All four sites will be back up by the end of the year, so one could imagine that pace would pick up, depending on the market.”
The federal government established the Strategic Petroleum Reserve in 1975 in response to the 1973–1974 oil embargo. The purpose was to limit the impact of disruptions in global petroleum markets. Officials could withdraw from the SPR during emergencies, energy interruptions, or supply troubles.
The world’s largest economy consumes about 20 million barrels of oil per day, meaning current reserves would be exhausted in 18 days if production ceased.
Monday, July 1, 2024
FCC Proposes Carriers Unlock All Phones Within 60 Days
https://www.theepochtimes.com/us/fcc-proposes-carriers-unlock-all-phones-within-60-days-5678082
Cellphone service carriers would have to unlock customers’ cellphones within 60 days after activation, under a new proposal issued by the U.S. Federal Communications Commission (FCC) on June 27.
“New unlocking rules would allow consumers the freedom to take their existing phones and switch from one mobile wireless service provider to another more easily, as long as the consumer’s phone is compatible with the new provider’s wireless network,” the agency said in a statement.
Some cellphones come with software that prevents the device from being used on different mobile networks. This software restricts the phone to the network provider selling the device. Unlocking the phone allows consumers to use different mobile networks.
The FCC said that the unlocking of phones also opens the door to increased competition in the wireless services market, gives consumers more flexibility when switching service providers, increases competition by reducing consumers’ switching costs, and reduces customer confusion by applying the same unlocking rules to all mobile service providers.
FCC Chairwoman Jessica Rosenworcel said, “When you buy a phone, you should have the freedom to decide when to change service to the carrier you want and not have the device you own stuck by practices that prevent you from making that choice.”
Providers tend to lock mobile phones to their network as the devices are sold at a discounted price. In exchange, buyers are required to commit to a network plan, typically lasting months or years. These agreements also carry an early termination clause mandating a penalty if the deal is ended before the expiry of the commitment period.
“An unlocking requirement may discourage a carrier from deeply discounting a phone because it cannot recoup its subsidy if a customer immediately moves to another carrier,” Verizon said at the time.
“Providers rely on device locks to sustain their ability to offer such subsidies. Device locking periods, in fact, may greatly benefit low-income consumers because they make devices more affordable, lowering the barrier to entry to mobile service.”
The proposal will also seek public comments on the impact of the 60-day unlocking rule on service providers’ incentives to offer discounted phones.
T-Mobile Deal
Phone unlocking was a key issue in the recently concluded acquisition of Mint Mobile by T-Mobile. The deal was announced in March last year, with T-Mobile putting up $1.35 billion to acquire Ka’ena Corporation, which owned Mint Mobile and other brands. The deal was completed on May 1, 2024.Locking phones not only makes it more difficult for consumers to change carriers but also reduces the number of devices available in the secondary market, the groups argued. Smaller carriers and new entrants can be disadvantaged in the marketplace due to a lack of handset availability, the letter said.
“Locked phones, particularly those tied to pre-paid plans, can disadvantage low-income customers most of all, since they may not have the resources to switch carriers or purchase new phones. Unlocked phones also facilitate a robust secondary market for used devices, providing consumers with more affordable options.”
Back in 2014, the CTIA, which represents the U.S. wireless communications industry, adopted six standards for mobile device unlocking.
One policy states that carriers, upon request, will unlock mobile wireless devices or provide the information required to do so once the contract period under which the device was purchased ends.
The FCC advises people who are looking to unlock their phones to speak with their service provider to find out their eligibility.
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